Business Cycle RiskCycles of growth and decline experienced by industries.
Business RiskThe risk that a business will not perform to target.
Commodity RiskCommodity price fluctuations and supply disruptions.
Competitive RiskA business loses market share or experiences pricing pressures due to competition.
Compliance RiskThe risk a business will violate laws, regulations or standards.
Concentration RiskA lack of diversification.
Contagion RiskThe risk of an economic shock that spreads across countries and industries.
Counterparty RiskThe risk that a counterparty to a transaction will not fulfill their obligation to you.
Country RiskInvestments tied to a particular country that are at risk due to political or economic problems in that country.
Credit RiskThe risk of non-payment by borrowers and customers.
Currency RiskThe potential for exchange rate fluctuations to cause losses.
Economic RiskThe risk of an economic downturn or economic issues such as inflation.
Environmental RiskLosses and liability related to environmental damage.
Event RiskLosses tied to a major adverse event such as a pandemic.
Exit RiskLosses due to difficulties in selling an investment.
Falling KnifeThe risk of buying something that has downside momentum – the price may simply continue to drop.
Fraud RiskLosses due to fraudulent activities such as embezzlement.
Geopolitical RiskThe risk of political or social instability.
Governance RiskLosses due to poor management and insufficient oversight.
Idiosyncratic RiskHard to predict failures of a single business such as a product recall.
Industry RiskLosses across an industry due to factors such as business cycles, commodity prices and regulations.
Inflation RiskThe risk of a sustained and broad increase in prices.
Inherent RiskThe risk of inaccurate information such as an error or omission in a financial statement.
Interest Rate RiskLosses or relative underperformance due to changing interest rates.
Investment Horizon RiskThe risk that you will need to use your savings earlier than expected.
Liquidity RiskThe risk that you will run out of cash or be unable to sell investments at a reasonable price due to a lack of demand.
Management RiskPotential for losses due to mismanagement.
Market RiskLosses due to market conditions such as prices or low liquidity.
Model RiskFailure of an investment model.
Operational RiskOperational failures of a business due to factors such as supply chain issues.
Political RiskThe risk of political instability.
Priced For PerfectionRisks associated with a firm with a high valuation whereby the market expects very high performance from the company.
Regulatory riskThe potential for new regulations that impact your investments.
Risk Of RuinThe risk of losing all of your capital, often due to leverage.
Short SqueezeA lack of liquidity to cover all the investors who want to exit short positions at the same time. Potential for major losses.
Systematic riskRisks to the entire financial system or market such as a major information security attack.
Tax riskThe risk of unexpected taxes.
Upside RiskA term for greater than expected returns.
Value TrapAn investment with a low price for a good reason that might not be apparent to all investors.
Volatility riskThe risk of price swings.